Did IDOR determine whether the two redacted 'whole food' products qualified for Illinois's lower food tax rate?

Plain-English summary

A seller asked IDOR to classify two products described as “whole foods” and enclosed their labels. The public letter redacts both product names and does not reproduce the labels, so no product-specific outcome can be verified.

IDOR supplied only the general rule in 86 Ill. Adm. Code 130.310:

• Food for off-premises consumption generally received the lower 1% state rate plus applicable local taxes.
• Alcoholic beverages, candy, soft drinks, and food prepared for immediate consumption were excluded from that low-rate category.
• “Food” included solid, liquid, powder, or other items intended primarily for human internal consumption, including condiments, spices, seasonings, vitamins, bottled water, and ice.
• “Candy” meant a sweetened preparation combined with chocolate, fruit, nuts, or other ingredients in bars, drops, or pieces, but did not include a preparation containing flour or requiring refrigeration.

Common questions

Did the letter decide the two products' rate? Not in the published version; the necessary product details are redacted.

Did flour matter to the candy definition? Yes. A preparation containing flour was excluded from “candy” under the quoted definition.

Citations and references

• 86 Ill. Adm. Code 130.310

Source

• Landing page: https://taxarchive.illinois.gov/research/legal/letter-rulings/sales-tax/2012.html
• Original PDF: https://tax.illinois.gov/content/dam/soi/en/web/taxarchive/research/legal/letter-rulings/sales-tax/2012/st-12-0053.pdf

Original ruling text

ST 12-0053-GIL 09/27/2012 FOOD
This letter discusses the State tax rates applicable to sales of food. See 86 Ill. Adm.
Code 130.310. (This is a GIL.)
September 27, 2012
Dear:
This letter is in response to your letter dated September 7, 2012, in which you request information.
The Department issues two types of letter rulings. Private Letter Rulings (“PLRs”) are issued by the
Department in response to specific taxpayer inquiries concerning the application of a tax statute or
rule to a particular fact situation. A PLR is binding on the Department, but only as to the taxpayer
who is the subject of the request for ruling and only to the extent the facts recited in the PLR are
correct and complete. Persons seeking PLRs must comply with the procedures for PLRs found in the
Department’s regulations at 2 Ill. Adm. Code 1200.110. The purpose of a General Information Letter
(“GIL”) is to direct taxpayers to Department regulations or other sources of information regarding the
topic about which they have inquired. A GIL is not a statement of Department policy and is not
binding on the Department. See 2 Ill. Adm. Code 1200.120. You may access our website at
www.tax.illinois.gov to review regulations, letter rulings and other types of information relevant to your
inquiry.
The nature of your inquiry and the information you have provided require that we respond with a GIL.
In your letter you have stated and made inquiry as follows:
Please review the enclosed product labels for each item listed below, and provide us
with a determination of sales taxability in your state. Please note that these products
are categorized as whole foods.
Products:

PRODUCT1
PRODUCT2

I will be happy to provide additional information if needed. Thank you for your prompt
attention to this matter.
Thank you for your assistance in this matter.
DEPARTMENT’S RESPONSE:
The Department’s regulation regarding the appropriate tax rates for food can be found at 86 Ill. Adm.
Code 130.310. Food that is to be consumed off the premises where it is sold (other than alcoholic
beverages, candy, soft drinks, and food that has been prepared for immediate consumption) is taxed
at the lower state tax rate of 1% plus applicable local taxes. Food is defined as any solid, liquid,
powder or item intended by the seller primarily for human internal consumption, whether simple,
compound or mixed, including foods such as condiments, spices, seasonings, vitamins, bottled water
and ice. Candy is defined as a preparation of sugar, honey, or other natural or artificial sweeteners in
combination with chocolate, fruits, nuts or other ingredients or flavorings in the form of bars, drops, or
pieces. Candy does not include any preparation that contains flour or requires refrigeration.
I hope this information is helpful. If you require additional information, please visit our website at
www.tax.illinois.gov or contact the Department’s Taxpayer Information Division at (217) 782-3336.

ST 12-0053-GIL
September 27, 2012
Page 2
Very truly yours,

Debra M. Boggess
Associate Counsel